FT: At least 47 large US data centre projects delayed, withdrawn or blocked this year
In short
The Financial Times reported on 18 October, citing the firm Reglayer, that at least 47 large US data centre projects have been delayed, withdrawn or blocked this year. Bernstein estimates that only about 35% of planned US projects are likely to be realised. Korean outlets linked the problems to higher borrowing costs, power-grid and permitting delays, local opposition and Microsoft's termination of an Nscale contract in the UK.
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The Financial Times reported on 18 October that the US AI infrastructure boom is showing cracks. Citing the regulatory information firm Reglayer, it said at least 47 large US data centre projects have been delayed, withdrawn or blocked this year. Reglayer described the number as a conservative estimate covering only the largest projects. Earlier this month, the investment bank Bernstein estimated that only about 35% of planned US data centre projects are likely to be realised. The FT's own survey found that more than 1,000 communities across the US tried this year to introduce moratoriums or other restrictions on AI infrastructure. [ 2 , 5 , 13 , 20 ]
Korean outlets pointed to financing as a main cause. Yonhap wrote that rising interest rates and a weaker bond market are making it harder for neocloud firms, which lease and operate AI data centres, to raise funds. CoreWeave's shares fell 23.6% last week, and one of its bonds trades in distressed territory. Dong-A Ilbo said CoreWeave's bond yield jumped to about 15%. Chosun Ilbo said SoftBank-controlled SB Energy has about $430 billion in future revenue contracts but would need $174 billion to deliver them, and has postponed its IPO. It said Nebius had raised about 20% of the roughly $250 billion it needs for 5 gigawatts of capacity. [ 5 , 8 , 14 , 20 ]
Several Oracle sites for the Stargate project with OpenAI and SoftBank face delays. Korea Economic Daily said Oracle's Wisconsin site, which it leases, faces transmission-grid permitting problems. It also said Oracle gave notice of force majeure on its Project Jupiter site in New Mexico to a developer affiliated with Blue Owl Capital, a step that lets it defer rent if the schedule slips. The paper said Anthropic can withdraw from a $45 billion contract with Nscale if Nscale fails to meet financing or facility delivery deadlines for a West Virginia project. [ 2 , 5 , 13 ]
Reuters and the FT reported on 18 October that Microsoft terminated its agreement for an Nscale data centre in Essex, England, according to AI Times. The project had been repeatedly delayed by grid-connection problems, and the grid operator reportedly told Nscale it could not supply the power until the 2030s. Microsoft did not disclose a specific reason. Nscale said it intends to continue the project, is looking at alternative power sources and other UK sites, and still has a long-term relationship with Microsoft. [ 10 , 11 , 12 ]
A Columbia Business School professor wrote in a Brookings Institution paper that US AI infrastructure spending would reach $10.3 trillion in 2025-2032, or 3.6% of GDP a year, about 1.5 times the peak of the 19th-century railway boom. He warned that the debt is hidden off balance sheets and that a 10% fall in cash flow could wipe out equity value. The Information, citing executives, said the hundreds of neocloud firms could consolidate to seven to ten within a few years. Hankook Ilbo quoted BlackRock chief executive Larry Fink as saying on 14 October that the US would fall into recession if AI infrastructure building were halted in any form. [ 5 , 13 , 20 ]
Data centres have also become a US midterm election issue, according to Chosun Ilbo, which said Republican and Democratic candidates for Ohio governor both back limits on new ones. In South Korea, Dong-A Ilbo and Newsis said shares of Samsung Electronics and SK hynix have weakened, and Newsis said a prolonged slowdown in data centre building could dampen medium-term memory demand. Newsis also noted voices arguing that AI infrastructure is still at an early stage. [ 8 , 14 , 21 ]
Why it matters
Korean business outlets say the strain on AI data centre builders could weaken the AI investment boom that supports the US economy. Korean outlets also note possible effects on demand for chips from Samsung Electronics and SK hynix, whose shares have weakened.
Key facts
- Citing Reglayer, the FT reported that at least 47 large US data centre projects have been delayed, withdrawn or blocked this year; Reglayer called the figure a conservative estimate covering only the largest projects. [ 2 , 5 , 7 , 13 , 14 , 20 ]
- Bernstein estimated this month that only about 35% of planned US data centre projects are likely to be realised. [ 2 , 5 , 13 , 14 , 20 ]
- An FT survey found that more than 1,000 US communities this year tried to introduce moratoriums or other restrictions on AI infrastructure. [ 2 , 5 , 13 , 20 ]
- CoreWeave shares fell 23.6% last week, according to Yonhap and Seoul Economic Daily, and one of its bonds trades in distressed territory. [ 5 , 20 ]
- Microsoft terminated its agreement for an Nscale data centre in Essex, England, after grid-connection delays; Microsoft did not give a specific reason. [ 10 , 11 , 12 , 21 ]
- Anthropic has a right to withdraw from its $45 billion contract with Nscale if Nscale misses financing or facility delivery deadlines for a West Virginia project. [ 2 , 12 ]
- A Columbia Business School professor estimated in a Brookings Institution paper that US AI infrastructure spending will reach $10.3 trillion in 2025-2032, or 3.6% of GDP a year. [ 5 , 13 , 20 ]
Confirmed by several sources
- At least 47 large US data centre projects were delayed, withdrawn or blocked this year, per Reglayer data cited by the FT. [ 2 , 5 , 7 , 13 , 14 , 20 ]
- Bernstein estimates only about 35% of planned US data centre projects are likely to be realised. [ 2 , 5 , 13 , 14 , 20 ]
- More than 1,000 US communities tried to introduce moratoriums or other restrictions on AI infrastructure this year, per the FT's own survey. [ 2 , 5 , 13 , 20 ]
- Microsoft terminated its data centre agreement with Nscale in the UK. [ 10 , 11 , 12 , 21 ]
- Anthropic holds a right to withdraw from its $45 billion Nscale contract if financing or delivery conditions are not met. [ 2 , 12 ]
- CoreWeave's shares and bonds fell sharply last week, and one of its bonds trades in distressed territory. [ 2 , 5 , 13 , 20 ]
- Several Oracle sites for the Stargate project, run with OpenAI and SoftBank, face schedule delays. [ 2 , 5 , 13 ]
Still unclear
- How far CoreWeave shares fell last week. Yonhap and Seoul Economic Daily say 23.6%, Hankook Ilbo says about 24% and Korea Economic Daily says about 25%.
- Whether the IPO plans of Australia's Peomeoseu Grid (퍼머스 그리드) were postponed or cancelled. Yonhap, Newsis and Hankook Ilbo say IPO plans were postponed or put on hold; AI Times says the IPO was cancelled for lack of investor demand and Dong-A Ilbo says a roughly $5 billion IPO plan was withdrawn.
- Nscale's valuation in its planned US listing. Newsis says $35 billion and Dong-A Ilbo about $30 billion; Dong-A Ilbo adds that, per Bloomberg, some investors value it at $16 billion to $19 billion.
- The number of halted projects. A Maeil Business article says at least 75 projects were halted, which differs from the 47 in the FT and Reglayer figure cited by other outlets; it gives no source for the number.
- Whether at least $260 billion of planned US data centre projects will be cancelled this year. Only Newsis mentions a report to this effect, without naming its source.
- Why Microsoft ended the Nscale agreement. Microsoft did not disclose a specific reason; AI Times links it to grid-connection delays, and Newsis says the project appears to have fallen through because of them.
What local media are saying
Timeline, local time
- 18 October: Newsis publishes a YouTuber's analysis of the 17 October fall in US AI stocks and data centre financing worries. [ 1 ]
- 18 October: Korea Economic Daily reports the FT's count of at least 47 delayed or withdrawn US data centre projects. [ 2 ]
- 19 October: Yonhap reports the FT findings, which the FT published on 18 October US time. [ 5 ]
- 19 October: Chosun Ilbo reports that Microsoft withdrew from its UK data centre contract with Nscale. [ 10 ]
- 19 October: AI Times details the Microsoft termination and the Anthropic contract conditions. [ 12 ]
- 20 October: Newsis reports that South Korea's chip industry is watching the AI investment concerns. [ 21 ]